Health: When don’t you want to reveal a $1.3m deal? When it’s not selling COVID cures to China
Health & Biotech
Health & Biotech
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Now may not be the time to tell investors you’re about to start selling cosmetics to China, but ASX disclosure rules mean Roolife (ASX:RLG) has to unleash their news about a $1.3m revenue contract on the market today.
The company has done a deal to sell, market and distribute in China a US beauty products brand called Nuria Beauty — the first of a number of brands the parent wants to launch in the COVID-hit country.
Roolife says its business “provides an efficient and effective way for brands to access the Chinese market during the current disruptive coronavirus epidemic”.
Ecommerce sellers have felt the pinch from China’s coronavirus shutdown.
Distribution networks in the country have been affected by border closures and staff being placed in quarantine, and as workers from China’s regions — the people who do much of the lowly paid last mile deliveries to the shopper — didn’t immediately return home after the Chinese New Year holiday.
Roolife, which changed its name from OpenDNA last year, did the deal with Small World Brands, a US and Singapore-based beauty and wellness company which owns the Nuria Beauty brand.
Roolife will provide social media, key opinion leader, and content channel management on ecommerce platforms such as Weibo and Baidu.
The two-year contract will provide a mixture of monthly service fees and commissions from sales of products. It is expected to deliver revenue of $1.3m in the first two years if minimum performance milestones are met.
China’s skincare market is worth $33bn .
Polynovo (ASX:PNV) is not affected by coronavirus, yet, investors were told in a letter today. It does not source raw materials from China, has multiple supplier redundancy built into the supply chain, and does not sell into China. But major customers are based in the US, Australia, New Zealand, UK and Western Europe.
Likely lost in this week’s turmoil is the news from Vectus Biosystems (ASX:VBS) that preclinical data on its peptide molecule Vasoactive Intestinal Peptide had the ability to reverse tubulo-interstitial fibrotic damage to the kidney. This feature provides a distinct therapeutic advantage compared with currently-available anti-fibrotic agents. The rate of progression of tubulo-interstitial fibrosis determines the time course until patients require kidney dialysis or transplantation.